NZD/JPY Turns Bearish After Surprise Rate Cut by RBNZ

As the Asian session comes to a close, the Forex market shows that the Japanese Yen is one of the strongest currencies, while the New Zealand Dollar is currently the weakest. Naturally, this brings our focus to the NZD/JPY pair, where we’re seeing a strong bearish candle forming.

The catalyst for this movement is the surprise rate cut announced by the Reserve Bank of New Zealand, which has significantly weakened the New Zealand Dollar. On the other hand, the Japanese Yen, after a period of correction and weakness last week, appears to be regaining its strength, reverting to the more bullish trend we observed a few weeks ago.

From a technical perspective, the price is now bouncing off the 38.2% Fibonacci retracement level, which is acting as a key resistance. Additionally, the pair is breaking out of a wedge pattern that had been guiding the recent bullish correction. As long as the price remains below the 38.2% Fibonacci level, the sentiment for NZD/JPY stays bearish.

Source: https://www.axiory.com/analytics/technical-analysis/nzd-jpy-turns-bearish-after-surprise-rate-cut-by-r